WHNN's Citadel Broadcasting Files for Bankruptcy Protection

December 20, 2009       Leave a Comment
By: Dave Rogers

Printer Friendly Story View

Citadel Broadcasting Corp., that operates WHNN, Saginaw, and WJR Detroit, has filed for Chapter 11 bankruptcy protection in New York.

Citadel, based in Las Vegas, Nevada, is the nation's third-largest radio broadcasting company, and hosts several popular "big talkers" including Rush Limbaugh, Joe Scarborough, Don Imus and Mark Levin.

Stock in the radio giant has fallen from about $10 per share two years ago to as low as a penny per share recently.

Falling advertising revenue and over extension as a result of acquisitions was cited as the reason the company is seeking bankruptcy protection. However, none of the stations is expected to go off the air as a result of the court plea.

Besides the Michigan stations, Citadel's holdings include WLS-AM in Chicago, WABC-AM and WPLJ-FM in New York, KABC-AM in Los Angeles and KGO-AM in San Francisco.

Citadel lists total assets of $1.4 billion and total debt of $2.46 billion. The company said a majority of its lenders have agreed to to exchange $1.4 billion of debt for control of the company.

A New York private equity firm, Forstmann Little & Co., holds about 29 percent of Citadel's 265.8 million shares, making it the firm's largest shareholder.

A commercial-free satellite radio system, Sirius XM, have reportedly bit into Citidal revenues, along with declining ad sales.

Citadel told the court it expected revenue to continue declining. Moody's Investors Service, said the economy, lower ad spending, heavier debt and loan payments leave Citadel with an "unsustainable capital structure."

JPMorgan Chase Bank and other creditors will share a the new loan and will control about 90 percent of the new common stock in the reorganized company.

Ace American Insurance Co. of Philadelphia, Wilmington Trust Co. of Delaware and the Walt Disney Co. are all major creditors of the radio firm. ###

---

Printer Friendly Story View

	Prior Article February 10, 2020 by: Rachel Reh Family Winter Fun Fest is BACC Hot Spot for 2/10/2020
	Next Article February 2, 2020 by: Kathy Rupert-Mathews MOVIE REVIEW: "Just Mercy" ... You Will Shed Tears, or at Least You Should

Agree? or Disagree? Leave a Comment!

---

Dave Rogers
Dave Rogers is a former editorial writer for the Bay City Times and a widely read, respected journalist/writer in and around Bay City. (Contact Dave Via Email at carraroe@aol.com) More from Dave Rogers

---

Send This Story to a Friend!       Letter to the editor       Link to this Story
Printer-Friendly Story View

---

--- Advertisments ---